Approving Settlements

When Settlements with day-to-day payments and transactions are approved, a Funding Transfer gets created that credits the seller's bank account with their payout.

The grouping of Settlements and when they're available for approval depends on the payout schedule you've configured. Settlements, Entries, and Funding Transfers are available for review and approval via Finix's API and your Finix Dashboard.

• For Finix Flex customers, Finix manages and approves Settlements.
• For Finix Core customers, you’ll need to approve and manage your user's Settlements. Your sellers receive funds (or get paid out) when their Settlements are approved.

For example, say one of your sellers has a Settlement that only contains refunds. Once the Settlement is approved, the Funding Transfer will debit funds from the user's bank account.

Settlement Approval Checklist

It's crucial to exercise vigilance and carefully review each Settlement before approving it.

Reviewing Settlements ensures funding Transfers are created accurately and securely and protects your organization from potential risks and fraudulent activities.

Use the following list to understand what key aspects you should keep an eye out for when approving Settlements:

• Inflated Settlements : Watch out for Settlements that appear abnormally large compared to the usual processing activity of the seller. These inflated Settlements can indicate errors, discrepancies, or even potential attempts to manipulate the system. Take the time to investigate the underlying reasons for such high amounts to ensure they align with the seller's legitimate transactions.
• Large Discrepancies : Pay close attention to Settlements that exhibit significant discrepancies in comparison to the seller's usual processing activity. Such variances can arise due to unexpected changes in sales volume, sudden spikes in refunds, or other anomalies. By scrutinizing these discrepancies, you can identify potential issues, such as erroneous entries, fraudulent transactions, or operational errors, which may require further investigation.
• Odd Money Movements : Keep an eye out for any unusual money movements within the Settlements. This includes transactions that seem out of place, such as funds being transferred to unfamiliar accounts or routed through unverified channels. Such irregularities can be indicative of fraudulent activities or unauthorized transfers. Take immediate action to investigate and rectify these instances to safeguard your sellers and maintain compliance.
• Discrepancies in Total Amount and Transaction Count : Verify the accuracy of the total amount and the number of transactions included in each Settlement. Large discrepancies in either of these areas should raise a red flag, as they could indicate miscalculations, missing transactions, or even intentional manipulations. Thoroughly review the Settlement details, cross-checking them against the corresponding transaction records to ensure all amounts and counts are consistent and accurate.
• Large Negative Settlements : Negative Settlements can occur when the refund amount exceeds the initial transaction value, resulting in a net negative balance. While negative Settlements are not inherently problematic, they should still be closely examined. Unusually large negative Settlements may warrant further investigation to confirm their legitimacy. This scrutiny helps prevent potential losses, chargebacks, or disputes arising from excessive refunds or unauthorized refunds initiated by bad actors.

Additional best practices you can take include:

• Monitoring the Failed Funding Report and reaching out to sellers with closed accounts.
• Reaching out to sellers with insufficient funds.

Regularly monitoring and investigating Settlements for abnormalities or inconsistencies allows you to take proactive measures, ensuring smooth and secure transactions within your payments experience.

Creating Settlements

On a Daily schedule, Finix will automatically create Settlements:

• Monday through Friday on our LITLE_V1 processor.
• Every day using the VANTIV_V1 processor.

Payment Facilitators (Finix Core) Timelines

If you are a payment facilitator, you will need to approve your user's Settlements by 3:30 PM PST. If a Settlement gets approved after 4:00 PM PST, the Funding Transfer is sent to the merchant the following business day.

Managed Settlement Flow (Finix Flex)

If you are on Flex, Finix will automatically review all Settlements and approve them. Settlements can get delayed if Entries or transactions get flagged for review.

Settlements that require further review get held for risk review. Finix's team will reach out to you via a support ticket if further investigation is needed.

Settlement Schedules

Settlements for Merchants using the LITLE_V1 and VANTIV_V1 processors get completed Monday-Friday with the exception of federal banking holidays.

Finix Core customers must approve Settlements before 7:00 PM Eastern Time (4:00 PM Pacific Time) for sellers to receive next day funding. We recommend approving settlements no later than 6:00 PM Eastern Time to allow time for additional adjustments or review. 

Weekly Settlement Schedule

Weekly LITLE_V1 Schedule

Weekly VANTIV_V1 Schedule

Federal Banking Holidays

Standard Federal Reserve Bank Holidays:

For holidays falling on Saturday, Federal Reserve Banks and Branches will be open the preceding Friday. For holidays falling on Sunday, all Federal Reserve Banks and Branches will be closed the following Monday. An expanded schedule can be found on the Board of Governors' website.

• * Saturday - the Board of Governors is closed on November 10, 2023.
• * * Sunday - the Board of Governors is closed on December 26, 2022, and January 2, 2023.